The 5 Year Forecast shows a positive fund balance until the later years in the forecast, in which the fund balance falls into the negative. In the current fiscal year, FY21, the district is projecting a net negative cash flow due to state budget cuts at the end FY20 of $300 million as a result of COVID-19 and the significant impact COVID-19 is having on revenues and expenses. West Liberty-Salem’s portion of the FY20 cut was $200,000. The remaining years also show deficit spending. While the state allocated some new funds entitled Student Wellness and Success Funds for FY21, it was based on federal census poverty data. West Liberty-Salem school district is one of the lower poverty districts, thus the district is receiving $67,044 in new funding for FY20 and $99,532 in FY21. These funds must be used for services in these areas; mental health, homeless, community liaisons, physical health, mentoring, family engagement, professional development regarding trauma-informed care or cultural competence, before/after school programs including any time school is not in session (summer school). These funds are being used to offset the Middle School Guidance Counselor over the next few years. Other revenue changes would include a decrease in income tax due to an increase in unemployment as a result of COVID-19. State Funding is projected to remain flat, with no expected changes at this point. There is currently some legislative push pass a new Fair School Funding Plan bill (HB305/SB376). While the expectation would be a 6- year phase in, it could ultimately result in added funds in the amount of $1,277,000. Interest Income has also decreased due to significant lower interest rates, again as a result of the down-turn in the economy. BWC has issue a total of 3 rebates/refund in calendar year 2020. The final one, expected to arrive in December will benefit the district by $154,157. Per negotiated agreements, salary and fringes will continue to increase as appropriate. Increased health insurance cost is still a concern for the district. However, the rate increase for FY21 is 7.5%, much better than anticipated. West Liberty-Salem is a member of the Educational Purchasing Council which manages the health insurance plan. District administration is also involved in the EPC health insurance committee. Purchased services are expected to increase significantly for FY21 due to additional ESC contract costs related to more special education services needed. Technology costs will also increase as a result of adding another technology support person in order to manage the plethora of new IPADs in preparation of remote learning, again due to COVID-19. The district would again like to thank the community for renewing the income tax levy last year. The students are very fortunate to live in such a kind and supportive community.
Treasurer, West Liberty-Salem School
Financial Management Recognized
In January 2020 West Liberty-Salem received another check from the Ohio Bureau of Worker’s Compensation recognizing the district’s completion of the Safety Council requirements and another successful year of keeping employees safe! Great Job to all WL-S staff!!!